Archive · 3 Aug 2025
IBA Urges Government to Lower Electricity Costs for CBG Plants
The Indian Biogas Association (IBA) wants the government to reduce the cost of electricity for plants that make compressed biogas (CBG).
These plants convert things like trash into clean energy.
High electricity costs, which can be as much as half of their expenses, are making it hard for them to make money.
IBA suggests switching from high industrial rates to lower domestic rates.
This could help the biogas industry grow, support India's clean energy targets, and attract investment.
Cheaper electricity will also help reach environmental goals.
IBA requests concessional electricity tariffs for CBG plants to lower operational costs.
Electricity costs represent a significant portion of operational expenses, ranging from 20% to 48%.
IBA proposes shifting from industrial tariffs (₹7/kWh) to domestic tariffs (₹4.5/kWh).
Concessional rates aim to boost the CBG industry and support clean energy goals.
High industrial tariffs impede sector growth by straining profit margins.
- Who
- Indian Biogas Association (IBA)
- What
- IBA requested concessional electricity tariffs for CBG plants.
- When
- Published on August 3, 2025; No specific date of request mentioned.
- Where
- New Delhi, India
- Why
- To boost the clean energy transition and reduce operational costs for CBG plants.
IBA's Position
No Opposing View
Electricity Costs
IBA's Position
High industrial electricity tariffs are a major cost burden that hinders growth.
No Opposing View
No opposing view present in article.
- Organization
- Indian Biogas Association (IBA)
- Target
- Ministry of Petroleum and Natural Gas
- Issue
- High electricity costs for CBG plants
- Current Industrial Tariff
- ₹7 per kWh
- Proposed Tariff
- Domestic tariff (₹4.5 per kWh)
- Operational cost of electricity
- 20% - 48% of overall OPEX
